Press Release

June 05, 2026

ASANSOL ALLOYS PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	4.00	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	11.22	ACUITE BBB- \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	1.70	-	ACUITE A3 \| Assigned	RBI
Bank Loan Ratings	27.30	-	ACUITE A3 \| Reaffirmed	RBI
Total Outstanding	44.22	-	-	-
Total Withdrawn	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 38.52 Cr. bank facilities of Asansol Alloys Private Limited. The outlook is 'Stable'.
Further, Acuite has assigned the long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and the short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 5.70 Cr. bank facilities of Asansol Alloys Private Limited. The outlook is 'Stable'.

Rationale for rating

The rating reaffirmation factors in the stable operating performance, moderate financial risk profile with modest net worth and low gearing along with adequate liquidity position. The rating also factors in the long-standing experience of the promoters and healthy relationship with customers. However, the rating remains constrained on account of moderately intensive working capital operations with high level of working capital utilisation and susceptibility of profitability to volatility in raw material prices amidst presence in highly fragmented and competitive industry.

About the Company

Incorporated in 2007, Asansol Alloys Private Limited (AAPL) is engaged in the manufacturing of silico manganese, with an installed capacity of 22,000 MTPA at its facility in Asansol, West Bengal. The company is managed by its promoters, Mr. Joginder Singh and Mr. Kamaljit Kaur, who oversee its day-to-day operations.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of AAPL to arrive at the rating.

Key Rating Drivers

Strengths

Established operational track record and extensive experience of the promoters
The company is into manufacturing of silico manganese for over two decades. The promoters of the company Mr. Joginder Singh and Mrs. Kamaljit Kaur have been engaged in the ferro alloy industry over a decade. This has helped the company in establishing relationship with its suppliers and customers which helps in bagging advance orders.
Acuite believes, the promoters’ extensive experience and expertise of the business and healthy relations with customers and suppliers will continue to support the business.

Stable operating performance
The company reported an increase in revenue to Rs. 177.86 crore in FY2026 (Prov.) from Rs. 157.43 crore in FY2025, supported by improvement in average realizations during the period. A significant portion of the company’s sales, approximately 50%, is directed towards merchant exporters. The remaining sales are focused on the domestic market. The company exports mainly from Southeast Asian Countries. Also, the company fully utilized its total installed capacity during FY2025 as against of ~94.46% capacity utilization in FY2024. Further, the operating profitability margin of the company stood at 4.40 per cent in FY2026(Prov.) as against of 4.62 per cent in the previous year. The net profitability margin of the company also stood at 2.15 per cent in FY2026(Prov.) as compared to 2.01 per cent in the previous year.
Acuite believes, the operating performance would improve steadily on the back of expected capacity expansion in near to medium term.

Moderate financial risk profile

The financial risk profile of the company stood moderate marked by moderate net worth, low gearing and moderate debt protection metrics. The tangible net worth stood modest at Rs. 41.85 crore as on 31 March 2026(Prov.) as against Rs. 37.77 crore as on 31 March, 2025. The total debt of the company for FY2026(Prov.) stood at Rs. 10.11 crore includes Rs. 0.25 crore of long-term debt, Rs. 8.06 crore of short-term debt, and Rs.1.80 crore of CPLTD as on 31 March, 2026(Prov.). The gearing (debt-equity) stood low at 0.24 times as on 31 March, 2026(Prov.) as against 0.49 times as on 31 March, 2024. Interest Coverage Ratio stood at 6.02 times for FY2026(Prov.) as against 3.99 times for FY2025. Debt Service Coverage Ratio (DSCR) stood at 2.18 times in FY2026(Prov.) as against 1.76 times in FY2024. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.87 times as on 31 March, 2026(Prov.) as against 1.15 times as on 31 March, 2025. Net Cash Accruals to Total Debt (NCA/TD) stood at 0.54 times for FY2026(Prov.) as against 0.27 times for FY2025. The company is undertaking capital expenditure towards enhancing the installed capacity by 26000 tons in a phased manner with total cost of Rs. 35.00 Cr, which would be funded through the debt of Rs. 24.50 Cr and rest through promoter’s funds. The capex is expected to complete by March 2027. Notwithstanding the benefits of the capex plans, the financial risk profile is expected to moderate further in near to medium term.

Weaknesses

Moderately intensive working capital operations

The working capital operations of company are moderately intensive, marked by gross current assets (GCA) of 96 days in FY2026(Prov.) as against 114 days in FY2025. The inventory days of company stood at 85 days in FY2026(Prov.) as against 112 days in FY2025. The average inventory holding period is around 2-3 months; however, the company had stocked up inventory during FY2025, contributing to the increase in inventory days. The debtor days of the company also increased to 4 days in FY2026 (Prov.) as against 1 days in FY2025. The company majorly deals with advance payment. But for the merchant exports, the average credit period allowed is around 07-10 days. The creditor days of the company also stood at 51 days for FY2026(Prov.) as against 85 days for FY2025. The average credit period allowed by suppliers is 30-45 days. The average consolidated fund-based bank limit utilization for the past 06 months ending April 2026 is ~91.03 per cent of the sanctioned amount and Non fund based utilisation for the same period is ~79.11 per cent.
Acuite believes that the ability of the company to manage its working capital operations efficiently will remain a key rating sensitivity.

Susceptibility of profitability to volatility in raw material prices
The company’s profitability is highly susceptible to volatility in prices of the key raw material. Any sharp upward movement in the raw material prices and the inability of the company to pass on the increased cost of raw materials may result in further dip in operating margins. Acuite believes, the profit margins of the company likely to remain exposed to inherent cyclicality in the steel industry and volatility in raw material prices.

Presence in highly fragmented and competitive industry
The Ferro Alloys industry is marked by the presence of a large number of organized and unorganized players owing to low entry barriers. The company faces intense competition from the presence of several mid to large sized players in the said industry. The presence of a large number of players has a direct impact on pricing, restricts bargaining power having an adverse impact on margins.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Significant improvement in the scale of operations with growth of over 25 per cent and above along with maintaining healthy profitability
Improvement in the financial risk profile
Improvement in working capital management

Potential triggers (individual or collective) for a downward rating action:

Decline in operating performance with revenues falling below Rs. 150 Cr. or decline in operating margins
Increase in debt levels thereby impacting the financial risk profile
Elongation in the working capital cycle

Liquidity Position

Adequate

The company’s liquidity position is adequate marked by sufficient net cash accruals against its maturing debt obligations. The company has net cash accruals of Rs. 5.48 crore as against repayment obligation of Rs. 1.76 crore during FY2026 (Prov.). The NCA are expected to remain in the range of Rs. 5.00 – 8.00 crore against its maturing debt obligations in the range of Rs. 1.00-3.00 crore during FY2027-FY2028. The company maintains unencumbered cash and bank balances of Rs. 0.11 crore as on March 31, 2026(Prov.). The current ratio stands at 1.31 times as on March 31, 2026(Prov.) as against 1.23 times as on March 31, 2025. The average consolidated fund-based bank limit utilization for the past 06 months ending April 2026 is ~91.03 per cent of the sanctioned amount and Non fund based utilisation for the same period is ~79.11 per cent.
Acuité believes that the liquidity of the company is likely to remain adequate over the medium term on account of sufficient net cash accruals against its maturing debt obligations.

Outlook

Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	177.86	157.43
PAT	Rs. Cr.	3.83	3.16
PAT Margin	(%)	2.15	2.01
Total Debt/Tangible Net Worth	Times	0.24	0.49
PBDIT/Interest	Times	6.02	3.99

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
07 Mar 2025	Letter of Credit	Short Term	2.00	ACUITE A3 (Upgraded from ACUITE A4+)
	Bank Guarantee/Letter of Guarantee	Short Term	6.50	ACUITE A3 (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	7.05	ACUITE A3 (Upgraded from ACUITE A4+)
	Bank Guarantee (BLR)	Short Term	5.95	ACUITE A3 (Upgraded from ACUITE A4+)
	Cash Credit	Long Term	1.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Term Loan	Long Term	4.17	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Proposed Long Term Bank Facility	Long Term	1.85	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
27 Dec 2024	Letter of Credit	Short Term	2.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
	Bank Guarantee/Letter of Guarantee	Short Term	6.50	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
	Bank Guarantee (BLR)	Short Term	7.05	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
	Bank Guarantee (BLR)	Short Term	5.95	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
	Term Loan	Long Term	5.60	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Cash Credit	Long Term	1.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Working Capital Term Loan	Long Term	0.37	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Proposed Long Term Bank Facility	Long Term	0.05	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
09 Oct 2023	Letter of Credit	Short Term	2.00	ACUITE A3+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	6.50	ACUITE A3+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	7.05	ACUITE A3+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	5.95	ACUITE A3+ (Assigned)
	Cash Credit	Long Term	1.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	5.60	ACUITE BBB \| Stable (Reaffirmed)
	Working Capital Term Loan	Long Term	0.37	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	0.05	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.00	Simple	ACUITE A3 \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.80	Simple	ACUITE A3 \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.70	Simple	ACUITE A3 \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.13	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.50	Simple	ACUITE A3 \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	14 Feb 2019	Not avl. / Not appl.	31 Jul 2026	1.09	Simple	ACUITE BBB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Ritika Lalwani
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:

A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer:

An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.